Why is the Turbotax program is not giving me the full child tax credit for my 2 children, even though we qualify for full credit? Second child only $500 instead of $2k?

[kdeangt]

TurboTax program is telling me one of my children didn’t live with us for at least 6months last year, which isn’t true.  As a result the program won’t give this child the full credit.  

[xmasbaby0]

There has been lots of hype in the news about the new $2000 Child Tax Credit.  Unfortunately, some people do not yet understand that it does not mean they will automatically receive $2000 per child just for filing a tax return.

Do not assume your refund will include $2000 per child for child tax credits.  It does not work that way.  The CTC is used first to reduce your tax liability to zero. After that, there is a refundable portion —up to $1400 — called the Additional Child Tax Credit that is calculated based on the amount of income you earned.  You do not necessarily get the maximum amount.  You get 15% of the amount of income earned above $2500--UP to the maximum amount possible.

If your child turned 17 in 2018, even on the last day of 2018, you do not get the child tax credit.  There are no exceptions to the rule.  You can still claim your child as a dependent.

Your child must have a Social Security number to get the CTC.  

If your child was born in 2018 you need to say the child lived with you for the WHOLE year.

If your child lived with you for less than half the year you cannot get CTC.

If you did not earn at least $2500 you cannot receive the child tax credit.  Beyond that amount the CTC you receive is affected by your tax liability and the amount you earned.  You might not get the full $2000 of CTC.

The child tax credit is reduced by $50 for every $1000 of AGI over these limits:

Married filing jointly                $400,000    (CTC disappears at $440,000)

Single, Head of Household, Married Filing Separately or qualifying widower               $200,000  (CTC disappears at $240,000)

Look at your 2018 tax return to see the credits you received:

Child tax credit line 12a

Additional Child Tax Credit line 17b   (schedule 8812) 

Credit for Other Dependents line 12a

https://ttlc.intuit.com/questions/1900923-what-is-the-child-tax-credit

https://ttlc.intuit.com/questions/3029430-why-is-my-child-tax-credit-smaller-this-year

https://ttlc.intuit.com/questions/4505689-why-am-i-getting-the-credit-for-other-dependents-instead-o...

https://ttlc.intuit.com/questions/4499708-what-is-the-500-credit-for-other-dependents-family-tax-cre...

[kdeangt]

This is not helpful.  My children both qualify for full amount, the TurboTax program for some reason thinks one of my children didn’t live with us for at least 6 months last year, which isn’t true.  I believe this is a problem with the TurboTax program and cannot find a way to get help.

[xmasbaby0]

Go to My Info and click edit by the child's name.  If you happen to have a newborn, you have to say the child lived with you all year.  Or maybe you answered a question incorrectly about that child in My Info.  Check to make sure that you said the child was with you the whole year--not six months.

[kdeangt]

Thank you xmasbaby! Somehow the program changed how many years he lived with us without my input.  Perfect solution.

[xmasbaby0]

Great!  Glad the problem is solved!

[Jsather0407]

Thanks for this info. It gave me the $3,600 but I don’t see the $1,400. Do you know what to do see it gives me the $1,400? 

[Jsather0407]

Thanks for this info. It gave me the $3,600 but I don’t see the $1,400. Do you know what to do see it gives me the $1,400? 

[Critter-3]

If you are referring to a newborn then you should see the $1,400 third stimulus credit on the form 1040 line 30. Look forward there when you review your return later in the program.